It’s probably fair to say that not everyone who owns rental property has the extensive budget to do all the big updates and remodels they’d like. But you can make significant improvements to your property’s value if you get smart about budgeting and take some of the smaller steps to make improvements. Over time, those small updates can make a big difference to both potential residents and your bottom-line NOI.
Here are a few simple and genius ways to improve your rental property’s value without breaking the bank, especially if you only tackle one at a time. You might be inspired to take on a few small projects this summer and build up some renovation momentum to see sizable improvements over time.
1. Start Outside with Curb Appeal
You can make a big difference, especially with a property’s ability to make a great first impression, when you start outside for a few curb appeal updates. You can explore some of the functional aspects that also happen to improve aesthetics, like maybe a new front door or a freshly painted porch railing. Maybe a new gutter system is affordable, or some basic landscaping to tidy up a fence line or flower bed. Even if some of the smaller touch ups don’t have a direct impact on the hard value of your property, making it more marketable as a rental definitely does.
2. Kitchen Upgrades
Most of the experts will tell you that a full kitchen remodel can significantly improve the value of your rental property, both on paper and in terms of marketability. But if you don’t have the $15,000, $20,000, or more to spend on a complete do-over in the kitchen, start smaller. Maybe you can upgrade to newer appliances and take advantage of additional savings when buying multiple units. You could also look into resurfacing, staining, or painting the cabinets for a fresh look with light colors to open up the space. Adding an island can add value, as would a new countertop. And if you can’t swing those fixes, you can swap out handle and knob hardware for a fresh look, too.
3. Energy Efficient Windows
Replacing windows is a big project. But it’s one of those investments that will provide rewards over time, great for NOI. If you can afford to replace all the windows with easier to use and energy-efficient materials, you can see a major increase in the property’s marketability and value. Anytime you’re able to take steps to improve energy efficiency with doors, windows, and home ventilation units, the long-term benefits will far outweigh the upfront costs. And if you want, you can replace some windows at a time, not overburden your cash flow, and spread the investment out over time.
4. New Flooring Is a Great Investment
There are great options out there for high-traffic, long-lasting flooring. From tight Berbers to laminate styles, a durable and appealing floor covering can be an incredible rental property upgrade. And you can take the same installation approach as you would with the window replacement, tackling one room at a time to spread out flooring investments over time. Negotiate with flooring retailers and contractors if you plan to have ongoing work. And choose flooring types and styles are easy to find, so you can easily find replacement remnants if needed.
5. Smart Home Upgrades
We’ve talked about how valuable smart home upgrades can be to a rental property owner. And they’re worth mentioning here, as well. There are a host of products and software solutions out there, from doorbell cameras to smart thermostats, that can improve the rental experience and your bottom line. For example, a smart thermostat can be an energy-efficient upgrade to maintain temperature regulation. Protecting your property with perimeter or door cameras is another step to adding value as a safety measure. Explore what smart home upgrades make sense for your property and budget and install a few at a time.
6. Increase Storage or Rooms
Depending on the exact layout and structure of your property, you might have an opportunity to add additional storage, frame out another room, or create an open floor plan. Some of these remodels will be more involved than others. But finding an affordable way to create an extra closet, or to finish out an attic space, or to knock out a non-load-bearing wall could net incredible returns.
Start small and make manageable improvements over time to grow the value of your Lehigh Valley rental property. And if you need additional help figuring out your timeline or your budget, let the Axel Property Management team be your guide!
